Sources in Israel's Foreign Ministry said the ministry has convened a committee to discuss " what to do if we wake up one day and the Iranians have nuclear weapons," local daily Yedioth Ahronoth reported on Monday.

"You prepare for a natural disaster even though you do everything in your power to make sure that it doesn't happen," a senior official who asked to be anonymous told the newspaper, adding "you have fire drills, even if you do everything you can to ensure that a fire never breaks out."

Along with the Foreign Ministry, the National Security Council and Prime Minister Benjamin Netanyahu's inner security cabinet, including Foreign Minister Avigdor Lieberman, also prepare government policy, the report said.

"The government's position is that all attempts have to be made to prevent Iran from going nuclear," a senior Israeli official told the Ha'aretz newspaper.

The Foreign Ministry is also considering how to react if the Palestinians go through with a threat to unilaterally declare a state in the West Bank, if Israel does not accede to demands to cease settlement construction, said the report.